Intra-Day Market Moving News and Views (EUR/USD)

Intra-Day Market Moving News and Views


27 Oct 2014 02:15GMT

Euro rises above Friday's 1.2696 top in Asia as release of Sunday's stress tests report by the ECB on 130 banks showed no nasty surprises. Despite initial knee-jerk movement in Aust. on Monday (NZ was closed for a holiday), euro climbed in Asian morning after meeting buying interest at 1.2673.

Although consolidation with mild upside bias is likely ahead of European open and buying euro on dips is recommended, investors shud pay attention to the release of the important Ifo reports in European morning.
Ifo Institute will release its report on German business climate at 09:00GMT and market is expecting October's reading to be 104.3, slightly worse than the previous reading at 104.7.

Bids are noted at 1.2680-70 and around 1.2660 with mixture of bids and stops emerging below 1.2650.
On the upside, offers are placed at 1.2700-10 and further out at 1.2720/25 with mixture of offers n stops located just above 1.2750.

Bloomberg reported on Sun 25 lenders among the 130 banks including Banca Monte dei Paschi di Siena SpA failed a stress test led by the ECB, which showed the biggest capital hole in the region's banking system in Italy.

The ECB identified a total gap of 25 billion euros as of the end of 2013, most of which has now been raised by banks. Among lenders still in need of funds, Italy's Monte Paschi (BMPS) n Banca Carige SpA (CRG) must find a combined 2.9 bln euros between them, the ECB said.

None of Europe's largest banks were found lacking. No French, German or Spanish institutions were required to find more capital.
Lenders found to be deficient now have as many as nine months to fill gaps identified by the ECB, which is aiming to close the door on half a decade of financial turmoil in the euro region.

The results, on first impression, are "very positive" n should benefit some bank stocks on Mon, JPMorgan analysts wrote in a note.